Idacorp (IDA) Q4 2015 earnings summary

Executive summary

• Eighth consecutive year of earnings growth; customer expansion, FCA revenue and customer sharing effects supported results, while lower off-system sales and one-time tax comparisons offset gains.

• Continued strategy focus on regulated utility operations, reliable service, responsible resource planning and cost control.

Financial highlights

• Operating revenues were $1.270 billion in 2015 vs. $1.283 billion in 2014; operating income rose to $282.1 million from $253.7 million.

• Net income attributable to IDACORP was $194.7 million vs. $193.5 million; diluted EPS was $3.87 vs. $3.85.

• Q4 revenue was $285.4 million, operating income $48.6 million, net income attributable $31.8 million and diluted EPS $0.63.

• General business revenue increased $28.8 million; off-system sales revenue fell $46.3 million, or 60%, as volumes and average prices declined.

• Adjusted for the 2014 $24.5 million tax-method-change benefit, 2015 comparisons also reflected a $7.2 million tax benefit from the early debt redemption premium.

Outlook and guidance

• Estimated capital expenditures approach $1.5 billion for 2016–2020, including aging-asset replacement, generation upgrades, underground cable replacement and system improvements.

• 2016 hydro generation forecast: 6.0–8.0 million MWh; the 2015 IRP projects no new resource needs before 2025, subject to significant planning uncertainties.

• 2016 priorities include core-business improvement, revenue growth, cost management, renewable integration and assessment of timing for a general rate filing.

• The Boardman-to-Hemingway line was expected in service in 2022 or later; permitting decisions were expected in 2016 or early 2017.